The Monetary System
Multiple Choice – Section 00: Introduction
1. You use U.S. currency to pay the owner of a restaurant for a delicious meal. The currency
a. has no intrinsic value. The exchange is an example of barter.
b. has no intrinsic value. The exchange is not an example of barter.
c. has intrinsic value. The exchange is not an example of barter.
d. has intrinsic value. The exchange is not an example of barter.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Comprehension
2. Which of the following is an example of barter?
a. A parent gives a teenager a $10 bill in exchange for her babysitting services.
b. A homeowner gives an exterminator a check for $50 in exchange for extermination services.
c. A barber gives a plumber a haircut in exchange for the plumber fixing the barber’s leaky faucet.
d. All of the above are examples of barter.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Application
3. A double coincidence of wants
a. is required when there is no item in an economy that is widely accepted in exchange for goods and services.
b. is required in an economy that relies on barter.
c. is a hindrance to the allocation of resources when it is required for trade.
d. All of the above are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Comprehension
4. Consider the following traders who meet.
Bill has an eggplant wants a head of cabbage
Tim has a head of lettuce wants a cucumber
Mike has a tomato wants an eggplant
Amy has a cucumber wants a head of lettuce
Which, if any, pairs of traders has a double coincidence of wants?
a. Bill with Mike
b. Time with Amy
c. Bill with Mike, and Tim with Amy
d. Bill with Tim, and Mike with Amy
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Application
NOTES: r
5. Consider four survivors on an island.
Ron has a cooking pot wants a machete
Alice has a machete wants a fishing spear
Raymond has a machete wants a cooking pot
Lee has a fishing spear wants a coconut
Which of the following pairs of survivors has a double-coincidence of wants?
a. Ron with Alice, and Ron with Lee
b. Alice with Lee
c. Ron with Raymond
d. None of the above are correct.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Application
NOTES: r
6. Consider five individuals with different occupations.
Allen prepares taxes wants ribs
Betty does dry cleaning wants computer fixed
Calvin fixes computers wants bread
Diedre bakes bread wants taxes prepared
Eric barbecues ribs wants dry cleaning
In a barter system which of the following pairs has a double coincidence of wants?
a. Allen and Eric
b. Diedre and Calvin
c. Both A and B are correct.
d. None of the above are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Application
7. Consider five individuals with different occupations.
Allen prepares taxes wants ribs
Betty does dry cleaning wants computer fixed
Calvin fixes computers wants bread
Diedre bakes bread wants taxes prepared
Eric barbecues ribs wants dry cleaning
If this economy has money
a. Allen will buy from Betty
b. Betty will buy from Calvin
c. Eric will buy from Allen
d. None of the above are correct.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Application
8. Consider five high school students working on homework in study hall.
Rosie has math homework wants science homework
Bob has English homework wants history homework
Piper has math homework wants science homework
Dewey has science homework wants English homework
Molly has science homework wants math homework
Which of the following pairs of students has a double coincidence of wants?
a. Rosie and Piper
b. Piper and Molly
c. Dewey and Molly
d. Bob and Dewey
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Application
9. Consider five individuals with different occupations.
Mary provides legal advice wants knives sharpened
Clark grows tomatoes wants legal advice
Nathan styles hair wants tomatoes
Polly brews beer wants knives sharpened
Paul sharpens knives wants beer
Which of the following pairs of individuals has a double coincidence of wants?
a. Mary and Clark
b. Clark and Nathan
c. Nathan and Polly
d. Polly and Paul
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Application
10. Money
a. is more efficient than barter.
b. makes trades easier.
c. allows greater specialization.
d. All of the above are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Knowledge
11. In an economy that relies upon barter,
a. trade does not require a double coincidence of wants.
b. scarce resources are allocated just as easily as they are in economies that do not rely upon barter.
c. there is no item in the economy that is widely accepted in exchange for goods and services.
d. All of the above are correct.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.142 – LO: 29-0
NATIONAL STANDARDS: United States – BUSPROG: Analytic
TOPICS: DISC: Money
KEYWORDS: BLOOM’S: Comprehension
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